Only days after Facebook’s stock took a record $100 billion tumble, Twitter’s shares are also down 20% after the company’s quarterly results announcement.
Times are tough for social media giants. Last week, Facebook lost over $100 billion in market capitalization after falling short of Wall Street’s expectations. Now, it’s Twitter’s turn. The company’s shares went down 20% after Twitter announced a drop of one million monthly users in Q2.
Twitter now counts 335 million users overall, with 68 million users in the US, down by 1 million since the previous quarter. It is this struggle to grow in the US that is getting shareholders worried about the company’s capabilities to grow and retain users overall.
Of course, Twitter has made no secret of its on-going “clean up” to make conversations more meaningful on its platform. That means deleting millions of fake, or locked accounts. But according to the company itself, these don’t have as big an impact on MAUs:
“When we suspend accounts, many of the removed accounts have already been excluded from MAU or DAU, either because the accounts were already inactive for more than one month at the time of suspension, or because they were caught at signup and were never included in MAU or DAU.”
That being said, Twitter might feel it was a little bit unfair for Wall Street to “punish” it. The company had a record quarter of profit. GAAP net income came in at $100 million, with revenue up by 24% year-on-year.
Obviously, this was not enough…
You might also like
More from Twitter
Twitter Blue Subscribers Now Get Up To One Hour To Edit Their Tweets
Not only do Twitter Blue subscribers get to edit their tweets, but now they will have up to 60 minutes …
Twitter Now Publicly Shows Who You Are Paying To Subscribe To
Twitter added a "Subscriptions" button to the user profile that lets anyone see who you are paying to subscribe to. Ever …
Twitter Blue Verified Subscribers Can Now Upload 2-Hour Videos
It probably still won't convince you to sign up, but Twitter Blue subscribers can now upload videos up to 2 …
Twitter Launches Encrypted DMs, But Only For Paid Subscribers
To send an encrypted DM on Twitter, you will need to be a Twitter Blue verified user, a verified organization, …
Twitter Is Purging Old Inactive Accounts
The purge of old and inactive Twitter accounts could free up many long-coveted usernames. Musk says Twitter will be removing accounts …
Is Twitter Working On A Cheaper Verification Plan For Organizations?
Twitter is reportedly working on a cheaper alternative for organizations to get verified on its platform. Currently, the only available …
Twitter Will Offer Free API Access For Public Announcement Accounts
Twitter announced it will revert to making its API free to use for accounts posting public announcements such as weather alerts, …
Twitter Will Require All Advertisers To Be Verified
It seems Twitter has found yet one more way to force users into paying for verification: Advertising on the platform …
The Twitter Blue Check Apocalypse Has Begun
Twitter has begun removing blue checkmarks from legacy verified accounts, leaving paid verification as the only way to own a …
